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On April 2, 2019, India’s Supreme Court (the “SC”) quashed the Reserve Bank of India’s (the “RBI”) consolidated framework for resolution of stressed assets (the “2018 Framework”) as being ultra vires the RBI’s powers under the Banking Regulation Act, 1949 (the “Act”).  Consequently, on June 7, 2019, the RBI revised the 2018 Framework and released…

On May 24, 2019, the Reserve Bank of India (the “RBI”) released a draft liquidity risk management framework (the “Proposed Framework”), which is proposed to be made applicable to all non-deposit taking non-banking financial companies (“NBFCs”) with a minimum asset size of INR1 billion (US$14.42 million approximately), all deposit taking NBFCs and all systematically important…

In a recent ruling, the Supreme Court (the “SC”) resolved a long-standing dispute between JK Jute Mill Mazdoor Morcha (the “Union”) and Juggilal Kamlapat Jute Mills Company Limited (the “Debtor”) by allowing registered trade unions to initiate insolvency proceedings as operational creditors on behalf of their members under the Insolvency and Bankruptcy Code, 2016 (the “Code”). …

On December 31, 2018, the Securities and Exchange Board of India (the “SEBI”) introduced several changes to the SEBI (Prohibition of Insider Trading Regulations), 2015 (the “Regulations”), which became effective on April 1, 2019.  They were introduced pursuant to the report of the Committee on Fair Market Conduct which advocated for tighter norms to prevent…

Background In September 2009, the Telecom Regulatory Authority of India (the “TRAI”) introduced mobile number portability services (“MNP Services”) in India by issuing the Telecommunication Mobile Number Portability Regulations, 2009 (the “MNP Regulations”).  MNP Services allow mobile telephone subscribers to transfer their mobile connection from one telecom service provider to another.  Simultaneously, the TRAI also…

Introduction On March 26, 2016, the Indian government introduced the Aadhar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (the “Act”).  The Act’s objective was, inter alia, to provide good governance, and an efficient and transparent delivery of subsidies, benefits and services to individuals residing in India by assigning a 12-digit unique…

Recently, the Indian government has introduced several new reporting obligations under the Companies Act, 2013 (the “Act”) for Indian companies in respect of their registered office address and dealings with micro and small enterprises (“MSEs”).  Additionally, the reporting requirements for significant beneficial ownership have been revised.  This update discusses the implications of the new reporting…

The Reserve Bank of India (the “RBI”) has revised the external commercial borrowings (“ECB”) framework on a regular basis in a bid to make foreign borrowings a lucrative method of raising capital.  On December 17, 2018, the RBI replaced the erstwhile regulations on ECBs and notified the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018. …

Recently, the Delhi High Court (the “DHC”) upheld a judgement of the Delhi Bench of the Income-tax Appellate Tribunal (the “Delhi Tribunal”) in the case of GE Energy Parts, Inc. (the “Taxpayer”).  The DHC held that the liaison office established by the Taxpayer in New Delhi with the permission of the Reserve Bank of India…

In 2013, India adopted a new company law regime under the Companies Act, 2013 (the “Act”) and the rules there under, which have been amended from time-to-time. This update discusses the changes introduced by the Companies (Amendment) Ordinance Act, 2018 (the “Ordinance”) with effect from November 2, 2018.  As the Ordinance did not get approved…